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Apple commands 73%, Samsung captures 26%

It's no secret that Samsung and Apple are dominating the smartphone market. According to IDC's figures for Q1 2012, Samsung had a 29.1 percent share of the worldwide smartphone market while Apple was not far behind with 24.2 percent.
With Samsung and Apple together commanding over 50 percent of the smartphone market, you would expect for them to take home a healthy portion of profits as well. While this is true, according to Asymco, the disparity between the profits reaped by Samsung and Apple compared with the also-rans in this sector is astonishing.

[Source: Asymco]

According to Asymco, the pair accounts for 99 percent of worldwide mobile phone operating profit. Samsung is using its nearly 30 percent share of the smartphone market to obtain 26 percent of the profits.
However, the biggest winner is Apple, which is pulling in an estimated 73 percent of the profits from the mobile market. Apple's performance shouldn't come as a surprise to many considering that the company pulled in $11.6 billion in profits during the first quarter (fiscal Q2).
HTC barely made a blip with just 1 percent of operating profits. LG, Motorola, Nokia, RIM, and Sony have all posted losses with regards to their respective mobile phone divisions, so they don't even factor into this equation.

Samsung Galaxy S III
"Seen this way, the story isn’t so much that Apple 'took the profits from the incumbents'", stated Horace Dediu of Asymco. "Rather, it’s that Apple created a vast new pool of profits. And one need not look far to find out where they came from: operators. These profits were mostly carrier premiums for the iPhone 4S."

Source: Asymco

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RE: carriers
By ritualm on 5/4/2012 5:32:35 PM , Rating: 0

One, and very importantly, Samsung isn't just Apple's competitor - it's one of Apple's primary suppliers. The 32nm Apple A5 SoC in some of the newer iPad 2's? Samsung makes that. When Apple's fortunes are on the upswing, Samsung gets more profits by making stuff for it, even if Sammy might not be doing as well in market share.

Two, and also very important, brands matter not one iota like you think it does. Have you noticed how people will stay with the same things no matter how full of shit they are? Once you've gone Android, would you leave for something else? No? Then you've just proved the exact opposite of what you wrote.

The magic of heroin, cocaine, krokodil and other exotic contraband lies with this little gem: it's ridiculously easy to get hooked into it - now try getting out of it. Apple knows this, that's why so many of its iOS features are tied with iTunes. There simply isn't a proverbial black hole powerful enough to suck everyone in over at the Android realm.

Android is open and free, sure, but open and free make less money than closed and not-free. Android users aren't locked into the ecosystem, so only a few companies are raking in any sort of money... and one of them happens to be a direct rival in the IT industry.

RE: carriers
By Tony Swash on 5/7/12, Rating: 0
"Folks that want porn can buy an Android phone." -- Steve Jobs

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